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Intersectoral and spatial spill-overs of firms’ bankruptcy in Spain

Author

Listed:
  • Laura Serra

    (University of Girona)

  • Claudio Detotto

    (University of Corsica (UMR-LISA CNRS 6240) and CRENoS)

  • Pablo Juan

    (IMAC, University Jaume I (Castelló))

  • Marco Vannini

    (University of Sassari (DiSea) and CRENoS)

Abstract

This paper employs provincial data to study the spatial and intersectoral spill-overs in aggregate failure rates in Spain, by using an Integrated Nested Laplace Approximation. The analysis is based on NUTS3 data over the time span 2005Q1-2013Q4. By speculating on the effects of the Spanish financial crisis, we document empirical evidence of the presence of spatial spill-overs among neighboring counties. Furthermore, some intersectoral spill-overs are also detected: we observe that Industry and Agriculture exhibit a positive impact on the Service sector. These results can be useful to design proper policy rules to better manage the spread of bankruptcies over time and space.

Suggested Citation

  • Laura Serra & Claudio Detotto & Pablo Juan & Marco Vannini, 2022. "Intersectoral and spatial spill-overs of firms’ bankruptcy in Spain," Letters in Spatial and Resource Sciences, Springer, vol. 15(2), pages 197-211, August.
    • Handle: RePEc:spr:lsprsc:v:15:y:2022:i:2:d:10.1007_s12076-021-00296-z
    DOI: 10.1007/s12076-021-00296-z
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